Following the House’s passage of President Donald Trump’s ambitious tax and spending bill on Thursday, the Senate is now exploring numerous modifications to this extensive proposal, which incorporates many of the president’s key priorities.
Senate Majority Leader John Thune has a slight cushion; he’s able to lose three GOP votes to ensure the bill’s passage. However, several senators from various factions within the Republican Party are advocating for changes. Although the goal is to present the finalized bill to Trump by July 4th, the discussions may stretch throughout the summer.
“We’ve observed the House’s actions and held several discussions with our members, including those on the Senate Treasury Committee, about possible avenues to achieve 51 votes,” Thune mentioned to reporters, indicating that the dialogue remains optimistic.
Medicaid
Medicaid has emerged as a significant hurdle, gaining traction with some GOP senators, notably Josh Hawley from Missouri, Lisa Murkowski from Alaska, and Susan Collins from Maine. They have voiced concerns regarding potential cuts to the program.
Hawley, often seen as a populist, has been vocal about his position on preserving Medicaid benefits, explicitly discussing his worries with President Trump. He shared on social media that Trump assured him there would be no cuts to Medicaid benefits either from the House or the Senate.
Missouri has around 1.3 million people enrolled in Medicaid and the Children’s Health Insurance Program, and with the state’s expansion in 2020, around 340,000 residents are currently awaiting benefits through this expansion. Hawley emphasized the importance of health care for working families in a recent CNN appearance, stating, “It’s unjust to cut health care for working-class individuals.” Collins and Murkowski, who lean moderate, are also troubled by the bill’s potential modifications to Medicaid.
Collins mentioned that she could support work requirements for healthy individuals if they are “carefully drafted,” while Murkowski noted significant challenges that might complicate the bill’s passage in the Senate.
Energy Credit
Concerns have also been raised by Senators Tom Tillis of North Carolina, John Curtis of Utah, and Jerry Moran of Kansas about green energy subsidies from the Biden-era Inflation Reduction Act. Many Republicans are looking to eliminate these provisions from the bill.
Curtis, who has previously led the House’s conservative climate caucus, is advocating for the retention of tax credits related to low-carbon technologies. Moran expressed his support for eventually phasing out such credits but stressed the need to thoroughly assess the bill’s overall implications.
Meanwhile, North Dakota Senator Kevin Cramer has expressed his apprehensions regarding rolling back tax credits, arguing that emerging technologies require more time to develop adequately.
Spending and Debt Caps
On the fiscal front, Senate Republicans like Ron Johnson from Wisconsin and Rand Paul from Kentucky are pushing back against spending deficits. Johnson noted that several senators are seeking additional cuts to the proposed package, arguing it doesn’t go far enough in reducing expenditures.
Some senators, like Paul, have stated they would reconsider their votes if debt ceilings were adjusted, indicating they are uncomfortable with the significant increases proposed in the bill.
SALT Deductions
In the Senate, state and local tax (SALT) deductions don’t seem to be as pressing of a concern compared to the House. Senator Kevin Cramer remarked that senators generally aren’t worried about SALT issues, which tend to affect wealthier taxpayers, particularly in blue states.
The Senate Republican caucus mostly consists of members from Trump-leaning states, so the SALT debates have not been as impactful. While some, like John Barrasso, acknowledge the issue remains, they also emphasize the different pressures faced compared to House Republicans.
Timing
With the July 4th deadline approaching, Johnson has repeated calls for a lengthy review of the bill, yet there’s concern about whether there is sufficient time left. Idaho Senator Mike Crapo, heading the Senate Finance Committee, indicated the intention to push the bill through by the end of July.
In the midst of these discussions, a push for changes and cautious evaluations continues as the Senate navigates this significant legislative undertaking.
